Financing the gap: a blueprint for decarbonization

Building new, cleaner infrastructure is costly, and in some parts of the world, high-carbon plants have years of operational life left to run. Inflationary pressure in domestic markets and the impact of the war in Ukraine on energy security and supply are also likely to slow down progress towards meeting 2030 goals.  

Financing scaled innovative systems such as hydrogen supply chains and carbon capture usage and storage (CCUS) to combat emissions will require decisive policy and collaboration among governments, investors and business. Subsidies and public funds will be key, but it’s private finance that will close the gap. 

To enable stakeholders to compare company performance, authorities must collaborate in harmonizing international reporting standards. In the meantime, regulators are pursuing investigations into allegations of greenwashing among financial institutions, asset managers and pension fund trustees.